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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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01:00:00

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Apple 13, Us 12, S&p 10, Blackberry 7, Davos 6, Steve 5, Herbalife 5, Carl Icahn 5, Bill Ackman 4, Scott Wapner 4, Icahn 4, U.s. 4, Caterpillar 4, Exxon Mobil 4, Boeing 3, Joe 3, Ackman 3, Mandy 3, Jon Fortt 2, Brian Shactman 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    January 25, 2013
    4:00 - 4:59pm EST  

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about a minute left. this is encouraging the bulls and scaring the bears right now. month to date this is what we've done so far in january. the dow up 5.9% for the month. the s&p up 5.25% for the month. as they buy stocks they're selling bonds. the ten-year yield, look at the ten year as it skyrockets here. it has gone up to 194 just this week. so we've had a real shift out of bonds and into stocks and one stock they're not buying yet is apple. 52-week low on apple. it has lost $246 billion in market cap since its peak and exxon mobil is getting ready to suppla flchlt t as the all-time value leader. is that significant? would you buy apple or exxon mobil just based on the value of these stocks?
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is it significant to this market? >> i think it is. it is very interesting the overall reaction to the market, the leading stock over the last couple years, apple, down significantly and the overall market is continuing to go higher. i think that's the interesting topic we should be looking at. >> we'll talk again soon. thank you. >> my pleasure. >> a few seconds left. more now on the second hour of "the closing bell." >> stocks rallying again. the dow less than 2% away from its all time high. welcome back to "the closing bell" everybody and happy friday as well. i'm mandy drury coming back to the table. we'll also be hearing from maria in davos, switzerland. in the meantime let's look at how we finished the day that was here on the street with the dow up by 68 points, the nasdaq up, i think today about the best day
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in weeks up by about 19 points and the s&p 500 finishing up above 1500 and a gain of 8 points. >> wrap up this week in the markets. back with us once again joe tennie from jp morgan funds. mark travis from intrepid capital funds. joe, you were with us last hour. you're constructive on this market. you want to see it moving higher but maybe we're getting a little ahead of ourselves. joe is not ready yet. eric marshall are you finding value in this market? the hodges funds are big value players. are you finding value even as we sit here at five-year highs for all of these major averages? >> right. i mean, even though we've seen a big move in the market we wouldn't expect, wouldn't be surprised to see some volatility around earnings season, which at the hodges funds we think we can take advantage of as active investors. but, you know, right now you're looking at 15 times earnings for the s&p 500. you take the inverse of that and look at it as a 6.5 to 7%
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earnings yield. that's very attractive relative to bonds and the other investment alternatives out there. >> you still see value. >> yeah. i think you have to really focus on individual stock selection. and we really see an environment here where it's really going to be a golden age for individual -- >> like which ones? >> stock selection and active managers. >> pin it down. give us some names. >> okay. well, we like the theme of oil by rail. trinity industries which makes cars that move rail. we like a derivative of the housing recovery briggs & stratton. we also like names where there is kind of secular growth opportunities and we see a shoe carnival as a small retailer regardless of what happens with the consumer we think they can really grow their store base and do it all organically. >> got it. >> shoes on a ship? >> shoe carnival. >> marc travis does the dow get
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back to the record high in the next week or next week or two and then what happens? >> you know, i would hesitate to annualize up 6% for january. you know, i'm like eric. i'm searching for equity securities where there is a discount between price and value. i would differ a little bit with eric in the small cap space. if you look at the russel 2000 it trades at 16 times operating income. the inverse of that is 6.25, which to me the russel, about 25% of the russel index makes no money and a lot of people feel like junk bonds where we also have some exposure are richly priced with a six handle or slightly below that. >> yeah. >> so i don't think that is a giveaway. an environment where we at intrepid capital want to put money to work at six to eight times operating income. >> okay. >> there are some opportunities out there. just not prolific. >> okay. >> i really think that, you know, i'm hoping the politicians will give us an opportunity to
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put some of our cash to work over the rest of the quarter. >> all right. >> i don't expect it to go up 72% for the year as we've done at the rate we're going. >> right. >> waiting for politicians before he invests. we relocated joe. got lost in the caverns of cnbc studios here in new jersey. >> walking out the wrong way. >> we finished on the highs of the day. this market just keeps moving on here. >> we'll take it. >> you're just going with the trend here. >> i think there is a fundamental reason behind the trend. everyone is talking about earnings now. earnings just kind of slowing down. i tell you what. if you take a look at this quarter's earnings season you're still looking at 5% or 6% earnings growth. i think that is in line with what we'll see over the next year. >> some of the gains false though? when you think about how much the expectations have been ratcheted down for this particular earnings season right, therefore when you get a beat, is that just a beat off a really low base or a really low expectation? >> i think it is a little bit of both. you are absolutely right. expectations have been coming down. i tell you what. i think the negative guidance we're seeing from a bunch of
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companies is actually healthy because if i look at expectations into the end of the year, you know, consensus estimates still look for double digit earnings growth. i think it's out of whack. you're only looking at 5% or 6%. guess what? sustainable, low growth and earnings along with more clarity around all after the issues and risks we've had to deal with over the past year. i think the upside is going to be multiple expansion. >> we've been watching carefully this -- the tape between exxon mobil and apple. two very different industries but two companies that have at times in the past been hallmarks or bellwethers for the stock, the overall u.s. stock market and the economy. and they're converging right now. eric marshall, at 417 billion dollars in market cap on both of these companies, who do you see is having the best value opportunity right now? exxon mobil or apple? >> i would be hesitant. they're both very -- two very different companies. i would use two different
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methodologies to value them. i can tell you at the hodges funds we believe that the future, any stock price is really just a function, a future earnings and cash flow. those are the things that we would be focused on. when you look at apple's valuation coming down here you really have to dissect and look at what are they going to earn over the next few years, what type of cash flow are they going to generate for the shareholders? and if you think that that is a good value at this price, it certainly is a lot easier to make an argument than it was when the stock was at 600 or 700. >> do you like it? need to be focused on. really >> do you like it? >> sounds like you do. >> well, you know, we're focused in our small cap fund. we don't own apple. we own cirrus logic which is a supplier to apple. that stock is beaten up as well. >> right. >> the company is generating 15% 20% cash flow yield. has a great balance sheet. we think there is opportunity around the sell off at apple. >> you want to weigh in?
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exxon mobil or apple? >> i think it reminds me back of the argument with the horseman in the late '90s when everybody had to own cisco, nortel and whatever else was in the top end of the nasdaq. apple is in a very difficult space historically technology changes rapidly and quickly. they've lost steve jobs. you know, i think once you get to a certain point there are no buyers at the margin when you're as big a percentage in the market as apple. >> would you rather own xon at this point? >> i think with the changes in india and china in terms of oil consumption i'll put my bet with exxon on this one. >> okay. >> all right. very good. >> i don't own it. it is too big a company for us in intrepid capital but that is where i would bet. >> not exactly the small world. >> thank you, gentlemen. have a good weekend. appreciate your insight. thanks for joining us. >> thanks for having me. >> glad you found your way back. >> so the dow is ontrack for the best january since 1994. it has lost ground in only four
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sessions this month so far. >> indeed. we've got the weeks winners and losers. >> positive economic data and earnings fuel the nasdaq and the dow -- excuse me the dow and s&p 500 to new highs. let's talk about the individual movers. first proctor and gamble the big winner the profit beat street consensus thanks to higher cost and new products it added to its portfolio. in health care as a sector it was a better performing sector for the week. j & j topping the list. growing optimism around a potential sale or spinoff of the multi billion dollar diagnostics business has been getting the street excited. that is why the stock ended higher. active stocks on the s&p 500, netflix staging an extended two-day rally after posting an unexpected profit. on the losing side hasbro getting hurt after announcing a 10% cut to its work force due to weaker demand from the holiday season. and now to tech. the story of the week at least here at the nasdaq. apple getting sliced.
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keep in mind the average large growth mutual fund has about 7% of its assets in apple shares. that according to morning star. a lot of people are watching the stock. apple has lost $246 billion in market cap since its september high but nonetheless the nasdaq was able to eek out a gain for the week. online travel players actually helped lift the index. piper jaffary highlighting priceline's dominant position in the online travel space specifically in emerging markets. so that positive commentary helped priceline, expedia, and trip adviser and higher for the week. what a week. back to you. >> indeed. thank you so much. enjoy your weekend. in the meantime the yearn to earn. more than a fifth of the s&p 500 companies post their results next week. >> wow. >> a really big week. our panel of market pros preview what could move your money big time on the other side of the break. >> apple falling off a cliff this week again hitting a 52-week low losing its
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distinction as the world's most valuable stock. is it broken? stick around for our heated bull/bear debate on apple. and speaking of heated -- >> this is not an honest guy. this is not a guy who keeps his word. this is a guy who takes advantage of little people. >> the quintessential example that, you know, on wall street if you want a friend get a dog. >> well, goodness me. a very lively battle to put it mildly between activist investors bill ackman and carl icahn right here on this network just a few hours ago. find out what all the fuss was about and also tweet us by the way who you thought won the fight. our twitter handle is at cnbc closing bell. mandy cnbc. what are you these days? >> i am bill griffith. >> just bill griffith. >> speaking of very rich people, bill gates, maria caught up with him in davos. she was not pulling any punches. >> microsoft has not had an easy time recently. would you ever return to the ceo
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more than 100 s&p 500 companies report their quarterly earnings next week. brian shactman has been covering a whole pile of them. just give us the highlight. not going to make you do all
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100. >> there are so many. i almost don't know where to start. i'll go on monday with caterpillar. pretty big deal. dealer stats released today show a little weakness. so we'll see how they do in earnings vs. estimates. after the close might get more attention when yahoo reports. people want to analyze marisa mayer's turn-around the stock under performing this month but up 28% in the last six months. tuesday's interesting because dow component pfizer will be somewhat over shadowed. we get numbers from ford. big deal. and amazon with the latter the revenue number to watch is $22 billion. are they still investing heavily? interestingly enough the street average price target for amazon is 293. only about ten bucks or so up from where they are now. on wednesday a lot of focus on boeing. many dreamliner problems post date the quarter but it will still garner attention. the other is facebook of course. the stock is up 20% this month and now in striking distance of its ipo price. thursday, a lot of volume. not quite the names of the
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previous three days. u.p.s. in a lot of ways is the key over here. it's a nice proxy on growth. the stock is up 12% this month. it yields about 3%. friday we close out the week with two oil giants, shevron and once again bill mentioned this a few moments ago exxon now has the most valuable company in the world moniker. we also see tyson as another one to point to, guys, because it is good insight into the health of the consumer depending on what tyson products. >> right. delicious. okay. as earnings seasons shifts into overdrive what can we expect and what will it mean for the markets as well? >> let's look ahead with our guests. good to see you both. nick, what are you expecting out of next week's earnings and will it help or hurt a market that feels like it wants to go even higher here? >> i think it is going to be a little more of the same where we see companies beat the lowered expectations. and then after they report cutting guidance. the good news is though the rate at which they're cutting the guidance is becoming less
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severe. that's been a good thing and one thing moving the markets higher. >> so, matt, what do you think are some of the names that could potentially move the markets significantly next week? >> mandy, my eyes will be on caterpillar first off on monday. that is a cyclical company that people, if caterpillar beats, which i don't think it will, they could use it as fuel for thought that the economy is strengthening that they've surpassed issues of weather and sandy and if it has good numbers i think people will use that as a catalyst to propel the market higher. >> okay. nick, who are you watching? take your pick. any particular category, any particular stock next week? there is plenty to choose from. >> absolutely. there's been a wide range of companies and industries reporting next week. so far we've had 147 companies in the s&p report. a lot of them this week have been the financial sector so domestically focused. >> right. >> next week we'll have the materials, energy, and industrial sectors and caterpillar one of those to see, really look and see if we'll see in the data what global growth is doing if there is a pickup. we're seeing it in the global pmis pick up.
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we want to hear from the companies as well. that can be a real dermer if the market rally will continue. >> apart from caterpillar what sectors or names have the potential to disappoint the market? >> i think yahoo has the potential to disappoint. i think facebook has the potential to dispoint. i think a lot of the store names out there that have paltry earnings that are propelled higher on hope this far so far have the potential for profit taking. when you look at the market at this time since second quarter of '09 you've seen roughly 74% of the names at this time report on a positive. right now it's only 69% so you're seeing some names come out with strong numbers. but the market as in the case with apple or citigroup or b.a.c. is really punishing the losers. if you see some people out there who are going to get beat up it'll be some of the low quality names. some of the higher quality names as you see today with procter & gamble if they out perform the market will reward them. i look to take profits on some of the lower quality names.
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>> one of the leaders in this group, in the stock market in this rally, the transportation stocks, which a lot of people take a lot of comfort from, transportation usually is a leading indicator. as long as you're moving stuff from point a to point b, that is a good indicator the economy is improving. u.p.s., the autos, some of the key transportation stocks reporting next week. you have high expectations for those? the market does. >> the expectations, we could say they're lowered expectations. the guidance is going to be the key. the other key here, too, is the delta. so while 69% of the companies are beating this corridor the historical average around 74 if we take the same 147 companies on the clock right now with 69% beating, only 57 of them beat last quarter. more importantly here i think this is a real key. last quarter the 147 companies, only 45% topped the sales expectation. this quarter it's 70%. so relative to expectations sales of earnings have been much
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better this quarter and that rate of change upwards is a reason to be positive. >> we're on the topic of transportation and obviously part of the reason we're seeing such a stellar rally in the dow transport is the airlines. boeing obviously in the news for other reasons recently but it does report on wednesday. its problems won't show up obviously in the quarter they reported. nonetheless what do you think they might say if anything about all of the recent problems and the ongoing investigations? >> you know, that is going to be a key question. might need a lawyer to answer that one. it's going to be tough for the guidance in terms of boeing. when you talk airlines it is a one company issuing the s&p 500 and that is southwest airlines and the revisions upwards have been positive there. that's been a key driver for the airlines doing well. >> all right. gentlemen, time -- go ahead. >> i think the transportation a lot of the growth if you look at the rails is inflationary. you're seeing the -- they're able to increase pressures or pricing and i think that shows that inflation is real even though statistically the
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government doesn't tell you there it is coming back and you're seeing that reflected in earnings. i think i would look at u.p.s. to see what they come up with. my concern is how they handle the fuel costish yew. >> they've been tempering expectations recently for sure. trading places in just four months. research in motion zooming to a 52-week high from an all-time low just in september. meanwhile, as we all know, apple dropping to that 52-week low from a recent record high. >> next week it is all about the blackberry 10. what will that do to the stock? will blackberry be cooler than i-phones? that is all coming up. stay with us. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason
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this was the week apple lost the top spot as the world's most valuable company shares tumbling more than 37% since hitting the record high in september. for the week apple is slipped nearly 12% following that disappointing earnings report. >> so is apple down for the count? or is this a comeback candidate? david treanor of new con strukts is calling the stock dead money. ouch. so you say still plenty of reasons to buy. still attractive both from a fundamental and also valuation point of view. make your case. >> absolutely. listen, there are some challenges these guys are working through and they're going to have the investors they can actually grow again but at the same time if you look at it there are plenty of rooens when
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the stock is around 450. what you have to see is a large customer base. you're not seeing customers flee from apple's ecosystem. they are still retaining their customers. they have a decent dividend policy that is going to go early this year, all expectations that it will growth year. they'll do share buybacks which is user balance sheet and cash. vealuation is cheap. lastly an option value on new products, new categories they can get into. >> okay. david, you say it's broken though. why? >> that's right. i think people under estimate the steve jobs factor here. look. nobody with a straight face would argue that the maps issue with the iphone 5 would have ever taken place if steve jobs were still at the helm. someone who is that pains takingly detailed oriented leaves a business, it makes a big difference. >> hang on. even under steve jobs they had some flops. it wasn't just a home run every
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single time. >> that's right. he was a great innovator but painstakingly detail oriented. they had flops but not big flops in terms of disjointed products that didn't work. what steve jobs made sure is that his customers knew the products would work and work well. and the other thing is that he had some flobs but he did innovate. i'm waiting for apple to invent another new category. until they do they'll see major margin compression. >> what about that? interestingly, coincidentally or not, the stock peaked on the very day that they introduced the iphone 5 and it's down 37% since that time. why do you think the stock is down as much as it is right now? is it innovation that's the problem? >> no. i think the thing is, you know, they really need to get into new product categories for those guys to get in. >> like what? what would you like to see? a buy in terms of a new product
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category? what would you like to see? >> that is the tough question. what next? >> a buy first. >> a buy? >> yeah. this is something we really need to see something from them. they need to surprise us with that. >> well, apple tv. i mean, apple tv has been rumored for a while. is that the next great innovation from the company do you think? >> i think there is also a potential for them to kind of make money on the services they provide to the ecosystem. the i-cloud service, i-tunes service. apple tv is clearly one of the other things they could do. so a bunch of different options. they could go out but i'm not sure how much it does to the numbers but definitely will help on the multiple side. >> david, what gets you back into this stock? >> i think they've got to really come out with new inventions. it has to be better than apple tv, something ground breaking. when the iphone first came out it looked like it came from a hundred years in the future. that's something that steve jobs can do and it worked. right? it's got to be something like that. i think you have to see some reversal of this huge, negative technical momentum going against
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the stock and look. the current valuation is really not that cheap. it implies the company's return on investment capital will be around 125%. that's still extremely high. it's back where it was about five years ago. i think that is rich. you know, look, not a bad company. it's still a great company but the stock price doesn't deserve the huge valuation it had when you had a special person and icon like steve jobs at the helm. >> very much a show me stock. finally to you, how much do you think potential growth and a major foothold in emerging markets is still to come for this stock and could give it a lift? >> the thing is that from 450, up 600 dollars and i think a lot can be done with the balance sheet changes. they could kind of get to that level. beyond that, yes. a loft tt of the new products a needed to drive it. >> gentlemen, it's the talk of
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the week. end of the month. what is going on with apple? when will it come back again? thank you for your thoughts. appreciate it very much. >> the big story today of course was what happens when you get a pair of very powerful and vocal activist investors together who have a real beef with each other. >> make a tender offer for the company. you want to bid for the company go ahead. >> hey, you don't have to tell me what i'm free to do. >> okay. >> oh, it was fun. we'll update the fireworks that took place between bill ackman and carl icahn right here on cnbc and the reaction buzzing all over the internet. wait until you see what happened. and who do you think won that battle? tweet us your thoughts at cnbc closing bell. also, up next -- >> coming up next from davos, switzerland. bill gates as microsoft's big search engine is better than google's. what's next from microsoft to move forward? that is coming up with bill gates in davos. n't a thing at a? it's lots of things. all waking up.
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what's next? what do you see as the most important goal toward economic growth. >> we've learned the hard way in
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mexico that the cost of civility, not having stability, but now we need to do the next step and the next step is productivity. >> that was maria talking about the future of mexico with that nation's finance minister. as you know she has been speaking to all of the heavy hitters in davos including microsoft founder bill gates. mr. gates of course now runs the bill and linda gates foundation with his wife. while he is still connected to the world of technology he is now incorporating it into solving some of the world's biggest health care challenges. >> thanks for joining us. good to see you. give us the update on global health. you and melinda have given away some $28 billion through your foundation. your fortune is still more than $60 billion. how do you see your work now? >> well, we're committed to the diseases that affect the poorest. malaria, tuberculosis, hiv, all the childhood conditions.
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until we treat the health of that poor child as being as important as the health of a rich child, we'll still have work to do. that gives us decade after decade of needing to make progress. malaria is a great story. the deaths have come down a lot. we don't yet have the tools to do an eradication so we are funding drug companies, vaccine companies, even new bed net concepts that will when we get them eventually give us enough to take whole countries and get malaria to zero and, you know, some day that'll become a disease like small pox, like polio will be soon that won't be killing anyone. >> it seems to me that in a tough economic time it has to get tougher in terms of getting the money that you need toward all of this. and i'd like to get your take on the tax structure that is most favorable to getting people to be as generous as they can. what could you tell our viewers in terms of what government policy may be able to do to
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actually encourage more giving and how it can hurt? >> well, the tax deductibility of charitable giving certainly has been a positive factor in why the u.s. is the most generous. people give about 2% of their incomes and that's true it's not disproportionately the richest. across the board americans are quite generous. the estate tax which lets your charitable giving not be taxed is clearly a very positive encouragement to look at giving. i'd say that even more than the taxes, though, the fact that there's more examples of people where -- so everyone is asking themselves, you know, could i be giving you something, the fact that they hear the impact is very strong, i think the kind of social movement is even more, but the tax structure helps. >> what continuing investment is needed at this point? in other words who are the
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biggest stakeholders you want to reach that you haven't reached yet that haven't been as generous as they could? is this process harder as we see austerity taking place all around the world? >> well, the money that helps out the poorest overwhelmingly comes from government aid budgets and so what kind of priority that gets say in the u.s. budget process over the next four or five years i'd say is pretty unclear. will the generosity go up? will it be cut proportionately? or will it suffer a disproportionate cut, you know? unless we tell the aids story very well, you know, i'd be quite worried about less generosity. more are coming in and giving internationally. but it would be hard, just the aids giving alone from t u.s. effort is $6 billion a year. and if that was cut back, you know, there's nothing that could come in and take its place. >> let me ask you about technology. a massive revolution continue.
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social media. what is your take on what's going on right now and what is most exciting? >> we're taking the internet revolution and applying it in more areas. so for example in education the idea that not only are the best lectures online but you can interact with people, talk to other students, that we ought to be able to deliver education that's higher quality but dramatically lower cost. there's a lot of excitement about that. massively online, open course ware, a lot of good pioneers that are learning and making that stuff better and better. the foundation is the biggest funder of that activity because we see so much promise and the increasing price of education just doesn't work. you know, a lot of unemployment is because kids aren't well educated enough. if you're college graduate, you know, unemployment is very low. so we've got to increase access to education but letting the price go up won't allow that. so it's often these applications
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of the digital technology are where you see the most impact even though it's all built off the fast chips and cheap storage and optic fiber and all the underlying platform. >> microsoft has not had an easy time recently. wow ever return to the ceo office? >> well, i'm engaged as chairman on a part-time basis. but my full-time work for the rest of my life will be the foundation work. microsoft's got a lot of exciting things going on. it's a competitive field. windows 8 has done well. surface computer is doing well. so, you know, i share lots of ideas about where office should go and, you know, i think the field as a whole should be proud of how quickly it's moving and microsoft will lead in a lot of those areas. >> what are you hoping for in terms of developments at microsoft? are there areas that you'd like to see the company further into? >> well, we have got windows and office as two primary assets.
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in office, letting people prepare information and share it in the interactive way, there's a ton we can do. skype is the most popular communication service in the world. we can make it easier to find people you want to talk to, organize groups, get notified, so we're in so many areas where we're thinking about information workers in a deeper fashion than any of the other companies. you know, we've got our great software skills. so i'd say the opportunity is as great as ever. we've always loved the amazing competition in the field and it, you know, is exciting as it's ever been. >> tell me about your own technology. final question here. it was reported that your daughters aren't allowed to use apple products. what do you carry? what is always in your hand? >> i use windows pc. windows phone is a fantastic product. you know, it's a great tool.
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>> are they not allowed to use apple products? >> they've never shown any interest. they love their windows phone. >> there you go. bill gates, thank you very much for joining us. >> they probably don't know apple exists. >> who? >> apple what? >> a fruit company? thank you, maria. be sure to tune in and check out our davos blog right now at dav davos.cnbc.com. our on site team gives you all kinds of behind-the-scenes access you will not find anywhere else. >> in the meantime straight over to brian shactman on market flash. what are you watching? >> unbelievable. eight dow stocks finished at new highs today. disney, home depot, johnson & johnson, jp morgan. pfizer, united technology. 3m. this goes back to 1945 for 3m. >> thank you very much. brian shactman. who would have thunk it? research in motion shares surging almost 70% over the past
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month ahead of the blackberry 10 launch which by the way is next week. we'll preview the much anticipated event. in just a few minutes' time -- >> up next we'll talk about the war of words happening right here on this network a few hours ago. hope you saw it. millionaire activist investor carl icahn in one corner versus bill ackman in the other. scott wapner officiated and is here next to recap. ♪ [ male announcer ] some day, your life will flash before your eyes. make it worth watching. introducing the 2013 lexus ls.
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expertise matters. find it at northern trust. people are still buzzing about what happened and my friend scott wapner's show on the noon time hour here east coast time. megainvestors bill ackman and carl icahn going at it. my palms were sweating for you, scotty. >> it was fantastic. great viewing. scott wapner you did a brilliant job. and of course for those who do not know the background, why do these two have issues? >> well, mandy, their feud goes back a decade when bill ackman was a young hedge fund manager who did a deal with carl icahn who was then already an investing legend. most recently, the war of words has turned to herbalife which ackman has taken a very public short position in. icahn has blasted him for that and today the whole thing ille live tv. >> in herbalife we simply provided to the public full
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transparency on this investment, 330 slides in detail, not scaring people, but going through the facts about the company. okay? we did exhaustive research over a year and a half. we'll either be proven right or wrong. okay. we shorted the stock. we have not covered our shares. we believe in what we -- we have more to come by the way. >> right. >> we have some questions the company has given us the opportunity to ask. we will have responses for every yish you th issue they raised in their presentation to us. what i thank carl for is he certainly helped highlight herbalife and the issues at herbalife and i, my guess is carl bought herbalife. if he did -- i think someone leaked that to the press and he flipped it out when the stock went up and made a good trade. congratulations on a good trade. i don't believe there is any real investor who can own this business long term because we believe it is a pyramid scheme and we can prove that to a high degree of certainty. >> hey, i appreciate, bill, that you called me a great investor. i thank you for that. unfortunately, i can't say the same for you.
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>> well, so as you hear there what began as a business deal gone sour has now definitely gotten personal. >> after the whole thing called me up and literally said, bill, we can be friends now. okay? i wish i had a recording of the conversation. i simply said, look, carl. you are no friend of mine. and that was it. >> okay. >> every time he goes on cnbc -- let me defend myself. >> i never said i want to be friends with you, bill. i wouldn't be friends with you. >> okay, carl. okay. >> you said to me you'd like to be friends so we could invest together. >> i have no interest, you think i want to invest with you? let's move on. >> i wouldn't do business with you if you were the last man on earth. >> let's move on. >> icahn never actually revealed whether he is on the other side of the herbalife trade. mandy that adds a little continued sizzle to all of this. certainly a day we at cnbc probably won't forget any time soon. >> absolutely. sizzle was a good word for it. >> very well done. >> now, of course, that is just the little taste. right?
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you can watch the entire clash of those titans. right now on cnbc.com. plus you can also get more insight into the herbalife part of their feud by checking out selling the american dream by my good friend hope greenburg. that is on cnbc.com. >> now, earlier we asked you whether you're on team ackman or team icahn. >> some of you responded, we'll be handing out t-shirts after the program. dividend says on twitter team ackman has my vote. i have no respect for icahn's juvenile tirades. talk about school yard bullies. then prendi says all for team ackman. no one speaks to scott wapner that way. derrick wilson says ackman vs. icahn was a draw. when is the rematch? we have plenty more on twitter. thank you for tweeting. continue to send your comments at cnbc closing bell. he's got a great track record. venture capitalist and entrepreneur peter thiel cofounded pay pal. he was also one of facebook's first outside investors.
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>> and he is also now bashing twitter to maria. find out why next.
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technology entrepreneur peter thiel has long had his hand on the pulse of new technology and he is an early
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investor for example in facebook. founder of pay pal. maria talked to him in davos. >> thanks so much. joining me right now is peter thiel venture capitalist founder of pay pal. always nice to see you. >> thanks for having me on the show. >> thank you so much. everybody wants to talk about facebook. i know you don't want to talk about that. you sold most of your stake last summer. you're unable to talk for legal reasons, and i want to respect that. let's talk broadly about social media. what is going on? how would you characterize this revolution right now? >> well, we're still in the continuation of the internet computer revolution. look at this from a much broader perspective, going on for 40 years. the internet, the start of the '90s, web 2.0 in the last decade. i think we'll continue to see significant more development in all these things. i think as we look ahead in the next decade, it will be figuring
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out ways to integrate the computer technology with the real world. businesses like air b andb which help people rent their houses out, their apartments out to other people. it's sort of a new very internet, virtual product. i think that's much more promising than all these things that are just in some ultimate virtual universe. >> i'm glad you say air bnb. i've been so impressed with these companies, all these things that are leveling the playing field, people who don't have access to having a home in new york city at reasonable prices. you say that's where the sustainability is. >> this is where the growth is. this is where you can sort of gain much greater efficiencies out of the existing economy. in some ways all these businesses are about taking things that exist and getting way more out of them. i think that's of course the story of technology more broadly, it's about doing more
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with less. >> there was some public comments recently that hinted that you're less impressed with some of the headlines in tech. the famous line. we wanted flying cars, we got 140 characters. >> they can all be good businesses even if they don't help us macroeconomic cli. i think twitter is a great business, the 500 or 1,000 people who work at twitter will have jobs ten years from now. i think the company is valued at $8 billion or $10 billion. that's probably an accurate valuation. it's not clear that a businesslike twitter is going to take our civilization to the next level and dramatically improve people's living standards. so i think there is often -- you can often have specific success and general failure. as an investor, i'm always focused on what businesses are going to be great successful businesses. as a concerned citizen, i also worry about how much are we improving living standards for the societies in which we live.
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>> peter, great to talk to you. >> thanks for having me on the show. today the s&p broke through 1500 for the first time since december 2007. so will we top out here or is the real fund getting started? >> let's ask brian stut man, an options action contributor. brian, how much more upside do traders see here and is there a level at which traders will hop out? >> we see a lot of people come on and say let's get out of the market. the market has had a great run. we actually got a pretty good intion option traders, the spy. we saw one sell the march 1st 155 call for only 24 cents. a really cheap call. he's giving an indication he only wants to get short this market once we see this trade up to 155. we saw a lot of other bull activity. i think the spy wants to go to the 153 level.
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options trader saying at 155 i would be out if we can get there in a month. that's a nice run for the market. when we're grinding along like this, just because the vix is low, it means we're going to grind higher. we saw that in 2005, 2006. we've seen that before in the past. the market can sustain itself here. let's see if it can keep going a little bit. i'm taking little caution positions. i rolled my calls up. that's about the level i'm looking at to get at this market. i'd like to stay there until we reach those levels. >> thank you so much. you can stay tuned for "options action" straight ahead at the top of the hour. will the blackberry 10 become the new must-have stock phone? >> our tech reporter jon fortt sizes up research in motion's new offering next.
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drum roll please. research in motion launching its blackberry 10 smart phone next week. our tech reporter jon fortt,
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you've been checking it out, right, jon? what do you give in terms of your assessment? >> it's nice software, mandy. let me set some context. last quarter verizon activated more than 3 million old iphone 4 and 4s. google had nice phone that still aren't selling well and those run android. it's going to be a sotough sell. i got hands on time with the blackberry 10 software. they've got clever ideas on improving the touch keyboard. it's done well separating the work stuff from the personal stuff. that said, i'm not switching to blackberry 10 personally because i'm a power user with valuable apps: they're going to have to get laggards or people that carry one phone. it's easy to port android apps to blackberry